Trump also announced that he is planning to impose tariffs of 25 percent or higher on semiconductors and pharmaceuticals.

A week after that, Trump signed an executive order imposing 25% tariffs on all steel and aluminium imports. These tariffs are set to take effect on March 12, a few days after the broad tariffs against Canada and Mexico supposedly come to pass.

Minutes from the Federal Reserve's January meeting released on Wednesday revealed members of its committee believe Trump's policies might "hinder the disinflation process". "Business contacts in a number of districts had indicated that firms would attempt to pass on to consumers higher input costs arising from potential tariffs,